Correlation Between Siamese Asset and Singha Estate

Can any of the company-specific risk be diversified away by investing in both Siamese Asset and Singha Estate at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Siamese Asset and Singha Estate into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Siamese Asset Public and Singha Estate Public, you can compare the effects of market volatilities on Siamese Asset and Singha Estate and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Siamese Asset with a short position of Singha Estate. Check out your portfolio center. Please also check ongoing floating volatility patterns of Siamese Asset and Singha Estate.

Diversification Opportunities for Siamese Asset and Singha Estate

0.54

Correlation Coefficient

Siamese Asset  Singha Estate

Very weak diversification

The 3 months correlation between Siamese and Singha is 0.54. Overlapping area represents the amount of risk that can be diversified away by holding Siamese Asset Public and Singha Estate Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Singha Estate Public and Siamese Asset is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Siamese Asset Public are associated (or correlated) with Singha Estate. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Singha Estate Public has no effect on the direction of Siamese Asset i.e., Siamese Asset and Singha Estate go up and down completely randomly.

Pair Corralation between Siamese Asset and Singha Estate

Assuming the 90 days horizon Siamese Asset Public is expected to generate 0.4 times more return on investment than Singha Estate. However, Siamese Asset Public is 2.48 times less risky than Singha Estate. It trades about -0.02 of its potential returns per unit of risk. Singha Estate Public is currently generating about -0.19 per unit of risk. If you would invest  742.00  in Siamese Asset Public on December 29, 2024 and sell it today you would lose (12.00) from holding Siamese Asset Public or give up 1.62% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Weak
Accuracy	98.41%
Values	Daily Returns

Siamese Asset Public  vs.  Singha Estate Public

Siamese Asset Public

Risk-Adjusted Performance

Very Weak

Over the last 90 days Siamese Asset Public has generated negative risk-adjusted returns adding no value to investors with long positions. Despite quite persistent fundamental drivers, Siamese Asset is not utilizing all of its potentials. The latest stock price mess, may contribute to short-term losses for the institutional investors.

Singha Estate Public

Risk-Adjusted Performance

Very Weak

Over the last 90 days Singha Estate Public has generated negative risk-adjusted returns adding no value to investors with long positions. Despite conflicting performance in the last few months, the Stock's fundamental drivers remain quite persistent which may send shares a bit higher in April 2025. The latest mess may also be a sign of long-standing up-swing for the company institutional investors.

Pair Trading with Siamese Asset and Singha Estate

The main advantage of trading using opposite Siamese Asset and Singha Estate positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Siamese Asset position performs unexpectedly, Singha Estate can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Singha Estate will offset losses from the drop in Singha Estate's long position.

The idea behind Siamese Asset Public and Singha Estate Public pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Portfolio Dashboard module to portfolio dashboard that provides centralized access to all your investments.